Dell (DELL) and HPE Stock Price Targets Lifted by BofA on Agentic AI Surge

Key Highlights

• BofA increased Dell’s price objective to $246 (previously $205) and HPE’s to $38 (previously $32)
• Analyst Wamsi Mohan maintains Buy recommendations on both technology firms
• Sequential agentic AI workflows are fueling demand for CPU-heavy servers and storage systems
• Dell commands approximately 12% of AI server market revenue; HPE projected to reach $6.5B in AI server sales by 2026
• BofA acknowledges its forecasts may underestimate accelerating agentic AI adoption

Bank of America Securities upgraded its price objectives for Dell Technologies and Hewlett Packard Enterprise this week, pointing to agentic AI as a significant driver for enhanced demand across both artificial intelligence and conventional server equipment.

Dell Technologies Inc., DELL

Analyst Wamsi Mohan increased Dell’s price objective to $246 from $205 while elevating HPE’s target to $38 from $32, maintaining Buy recommendations on both companies.

These target increases aren’t rooted in broad AI enthusiasm. Instead, they reflect a fundamental transformation in how AI computing tasks are executed.

Conventional AI inference operates as an isolated transaction. Agentic AI, however, converts a single query into multiple connected operations, with each step requiring independent inference processing. This architecture dramatically amplifies computational requirements for every task.

The critical element here involves CPU utilization. Since agentic processes are sequential and mutually dependent, they place substantially greater demands on CPUs compared to conventional AI operations. This trend directly benefits Dell and HPE’s established server portfolios, extending beyond their specialized AI hardware lines.

Dell’s Standing in the AI Server Market

Dell holds a position as a top-tier OEM in the AI server segment, capturing roughly 12% of aggregate AI server revenue. BofA projects the complete AI server marketplace at $496 billion for 2026. Dell is also experiencing accelerated market share expansion among Neo Cloud infrastructure providers.

Regarding infrastructure solution bundles, BofA calculates Dell possesses an 11% OEM market share, positioning it among the primary beneficiaries as demand intensifies.

Mohan’s $246 target incorporates an elevated valuation multiple, supported by strengthening demand across both AI-specific server products and traditional computing platforms.

HPE’s Revenue Projections

HPE is forecast to deliver $6.5 billion in AI server revenue during 2026. The company maintains a 9% OEM share in infrastructure solution stacks, which BofA identifies as an expanding market segment.

The revised price target of $38, elevated from $32, captures BofA’s assessment that HPE’s conventional server operations receive substantial tailwinds alongside its AI-focused product lines.

BofA explicitly stated that its financial models “are likely conservative given the pickup in agentic AI demand.” This candid acknowledgment is noteworthy and indicates the analyst perceives additional upside potential.

Dell shares declined 0.06% while HPE advanced 1.63% at the time of the research note’s publication. Neither security experienced substantial price movement that session, though the elevated targets position both companies prominently for investors monitoring AI infrastructure opportunities.

The price target revisions were released April 27, 2026.

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